New Issue: HSBC sells $11.03 million leveraged buffered uncapped notes on index, ETF basket

By Wendy Van Sickle

Columbus, Ohio, May 16 – HSBC USA Inc. priced $11.03 million of 0% leveraged buffered uncapped market participation securities due May 16, 2022 tied to a basket of indexes and an ETF, according to a 424B2 filing with the Securities and Exchange Commission.

The basket contains the S&P 500 index with a 69% weight, the MSCI EAFE index with a 15% weight, the S&P MidCap 400 index with an 8% weight, the iShares MSCI Emerging Markets ETF with a 5% weight and the Russell 2000 index with a 3% weight.

The payout at maturity will be par plus 1.34 times any basket gain.

Investors will receive par if the basket falls by up to 25% and will lose 1.3333% for each 1% decline beyond 25%.

The final basket level will be the average of the closing levels on the five trading days ending May 11, 2022.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Leveraged buffered uncapped market participation securities
Basket components:	S&P 500 (69% weight), MSCI EAFE index (15% weight), S&P MidCap 400 index (8% weight), iShares MSCI Emerging Markets ETF (5% weight) and Russell 2000 index (3% weight)
Amount:	$11,025,000
Maturity:	May 16, 2022
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 1.34 times any basket gain; par if basket falls by up to 25%; 1.3333% loss for each 1% decline beyond 25%
Initial levels:	2,727.72 for S&P 500, 2059.94 for EAFE, 1,939.09 for MidCap, $47.40 for EM ETF, 1,606.792 for Russell
Pricing date:	May 11
Settlement date:	May 16
Agent:	HSBC Securities (USA) Inc.
Fees:	0%
Cusip:	40435FWS2

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.